American Home Shield 2011 Annual Report Download - page 141

Table of Contents
2011 ABP Weighting, Threshold and Target Performance Goals
Participating NEO(1)
Organizational
Weighting
Performance
Weighting
Threshold
($ in 000s)
Target
($ in 000s)
% of Target
Performance
for
Threshold
Payout
% Payout
With
Threshold
Performance
Harry J. Mullany
100%
ServiceMaster
50%
ServiceMaster
ACOP $ 465,573 $ 509,788 91.3% 48.0%
Roger A. Cregg
30%
ServiceMaster
Revenue $3,127,394 $3,272,275 95.6% 73.4%
David W. Martin
20%
ServiceMaster
Cash Flow $ 442,380 $ 465,658 95.0% 70.0%
Thomas G. Brackett(2)
20%
ServiceMaster
20%
ServiceMaster
ACOP $ 465,573 $ 509,788 91.3% 48.0%
80% Terminix
35%
Terminix
ACOP $ 239,021 $ 256,650 93.1% 58.8%
35%
Terminix
Revenue $1,157,346 $1,213,376 95.4% 72.3%
10%
Terminix
Cash Flow $ 242,585 $ 244,785 99.1% 94.6%
Due to their departures before July 1, 2011, Messrs. Spainhour and Steve Martin were not eligible for 2011 ABP payments. Messrs. Fallon and Coba were not
eligible for a payout under the ABP provision requiring employment prior to the beginning of the fourth quarter.
Mr. Brackett transferred business units from Terminix to TruGreen on December 5, 2011 and as such was measured based on the results of Terminix for all of 2011.
(1)
(2)
The "% of Target Performance for Threshold Payout" is equal to threshold performance (which is generally equal to the prior year's actual performance)
divided by the current year's target goal. The payout levels for performance between threshold and target are based on a 6:1 ratio—for every one percent of
achievement above threshold performance levels, the plan pays out six additional percentage points of the targeted payout. The Board has found the 6:1 ratio
to be an effective motivator to improve over the prior year's results. The payout scale above target is a 4:1 ratio—for every one percent of achievement above
target, the plan pays an additional four percentage points of the targeted payout. The payout scale below target is based on a somewhat higher ratio to
underscore the importance of achieving target performance and to provide a more significant penalty for every percentage point performance is below target.
The payout scale above target increases from a 4:1 ratio to a 6:1 ratio for all performance measures if the plan's ACOP target is achieved for those NEOs
whose bonus is based on the consolidated Company performance. The payout scale above target increases from a 4:1 ratio to a 6:1 ratio for all business unit
performance measures if the plan's business unit revenue target is achieved for those NEOs who are in charge of a business unit. Increasing the above target
payout scale for these components is intended to emphasize the importance of achieving the corporate ACOP and the business unit revenue components.
The 2011 ABP target payout opportunity for each participating NEO (see table below) was based on our review of Peer Group data and the importance
of the NEO's position relative to the overall financial success of the Company. The following table sets forth information regarding the 2011 performance
under the ABP, including the percentage of performance target attained and the percentage of target bonus earned. Due to their departures before July 1, 2011,
Messrs. Spainhour and Steve Martin were not eligible for 2011 ABP payments. Messrs. Fallon and Coba were not eligible for a payout under the 2011ABP
provision requiring employment prior to the beginning of the fourth quarter.
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